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Here's how to calculate your employee's December overtime pay

by , 10 November 2014
As December approaches, you may be thinking about asking some of your staff to work overtime to cover for their colleagues who'll be on holiday.

After all, holiday time doesn't mean your business has to grind to a halt.

What you need to know is, asking your employees to work overtime this December will cost you.

'How much?' you ask.

Read on to find out so you can plan accordingly and, most importantly, comply with the Basic Conditions of Employment Act (BCEA).


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Here's how your employees December overtime could cost you
 

According to the BCEA if your employee earns below the minimum earnings threshold, you must pay your employee at least one and a half times his wage for the overtime he works.
 
But things are a little different when it comes to working overtime on a Sunday or a public holiday.
 
If your employee works on a Sunday, you must pay double his normal wage for each hour worked, unless Sunday is an ordinary day of work for him. If it is, pay him at least one and a half times his wage for each hour he works.
 

Now that you know about the costs, don't forget about the amount of overtime you can legally ask your employees to work

 
Your employees can't work more than ten hours of overtime a week (Section 10(1)(b) of the BCEA).
 
You also can't let your employee work more than 12 hours on any one day (Section 10(1A) of the BCEA).
 
Knowing how much it could cost you to ask your employees to work overtime this December will help you plan properly and comply with the BCEA.
 
PS: For more information on overtime, check out Your Essential Guide to Overtime: Everything You Didn't Know About Overtime and More and get your hands on our ultimate seven point overtime checklist.


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